California Home & Loan Headlines

Sacramento Bee

Home prices rise despite fewer sales

Following the expiration of the federal home buyers tax credit, sales of existing, single-family homes in California declined 4.2 percent during the month of June compared with the prior year, according to the CALIFORNIA ASSOCIATION OF REALTORS®’ (C.A.R.) June sales and price report. Meanwhile, the median price of existing homes in California rose 13.6 percent on a year-to-year basis to $311,950. The median price is the point at which half of the homes on the market sell for more and half for less.

KEEP THIS IN MIND

• Although the median home price in California rose in June on a year-to-year basis, in month-to-month comparisons the median price declined 3.8 percent, according to C.A.R.’s report. Despite the slight decline in month-to-month home sales, California’s housing market continues to recover at a quicker pace than the national housing market. Nationwide, home sales declined 5 percent in June and the median price rose only 1 percent, according to a report from the NATIONAL ASSOCIATION OF REALTORS® (NAR).

• C.A.R. expects home sales to be lower in the second half of the year because of the absence of the federal home buyers tax credit, but sales should remain above the long-run average and be significantly higher than the trough in 2007.

• According to C.A.R. President Steve Goddard, “It’s important to keep in mind that home prices are substantially below their peaks and interest rates remain at historic lows, making this a very affordable time for many first-time buyers to purchase a home of their own.”

• Home prices continued to post modest gains in June, due in large part to the lean inventory of homes for sale in many regions of the state. C.A.R.’s Unsold Inventory Index slightly rose to 4.8 months in June compared with 4.6 months in May and 4.2 months in June 2009. However, inventory remains well below the long-run average of a 7.1-month supply. The index indicates the number of months needed to deplete the supply of homes on the market at the current sales rate.

To read the full story, please click here: http://www.sacbee.com/2010/07/23/2909637/home-prices-rise-despite-fewer.html

In Other News…

Los Angeles Times

Credit rescoring can help you qualify for a mortgage

Rapid rescorings by independent, legitimate firms use procedures approved by the three major credit bureaus and can help correct errors or omissions that are dragging down your scores.

To read the full story, please click here: http://www.latimes.com/business/realestate/la-fi-harney-20100725,0,7390703.story

 

Los Angeles Times

Sellers should ensure that condo projects are on approved list for FHA mortgages Condominium owners who are trying to sell in today’s agonizingly slow housing market should make sure that their community is on the Federal Housing Administration’s approved list. Ditto for someone who is thinking about refinancing a condo.

To read the full story, please click here: http://www.latimes.com/business/realestate/la-fi-lew-20100725,0,7727492.story

 

Wall Street Journal

Mortgage delinquencies fall in June, still near record high

Some 9.39 percent of all loans were 30 days or more past due, down from 9.54 percent in May, according to LPS Applied Analytics, which tracks loan data. An additional 3.69 percent of mortgages were in some stage of foreclosure, down from 3.72 percent in May and the record high of 3.81 percent in March.

To read the full story, please click here: http://blogs.wsj.com/developments/2010/07/26/mortgage-delinquencies-fall-in-june-still-near-record- highs/

 

Los Angeles Times

Home prices tick up 4.6 percent in May

Home prices in 20 major U.S. cities gained in May, according to data released Tuesday, boosted by the effects of federal tax credits that have now expired.

To read the full story, please click here: http://www.latimes.com/business/la-fi-home-prices-20100728,0,7277846.story

 

San Diego Union-Tribune

Consumer confidence falls to lowest since February

Americans’ confidence in the economy eroded further in July amid worries about a still-stagnant job market. The report raised concerns about the overall economy and the back-to-school season.

To read the full story, please click here: http://www.signonsandiego.com/news/2010/jul/27/consumer-confidence-falls-to-lowest-since- february/

 

Wall Street Journal

The threat of “sidelined” home sellers

How many homeowners have been sitting on the sidelines during the housing downturn, waiting for massive price plunges to pass? The prospect of home-price stabilization is raising that question in some of the nation’s housing markets, say real-estate agents, who report an uptick in listings from “sidelined” sellers testing the waters.

To read the full story, please click here: http://blogs.wsj.com/developments/2010/07/27/the-threat-of-sidelined-home-sellers/

Bloomberg

Americans tap $8.3 billion in home equity, least in a decade

Americans in the second quarter tapped the smallest amount of home equity in a decade, showing households are focused on repairing tattered finances.

To read the full story, please click here: http://www.bloomberg.com/news/2010-07-28/americans-use-of-8-3-billion-in-home-equity-last- quarter-least-in-decade.html

 

Wall Street Journal

Doubling down on housing

The housing crash has left at least 11 million people in the unenviable position of owing more on their homes than they are worth—and many more millions with properties worth far less than they paid for them.

To read the full story, please click here: http://online.wsj.com/article/SB10001424052748704421304575383490870014662.html?mod=WSJ_hpp_sections_personalfinance

What you should know about the market

• Federal foreclosure-prevention programs have been expanded to encourage delinquent borrowers to avoid foreclosure by streamlining the short-sale process. In the new program, participating lenders now are required to advise eligible sellers of the minimum amount they will accept for the short sale prior to the house being listed for sale. If the seller secures an offer for the agreed price and meets the lender’s terms of the short sale, the lender must approve the proposed sale within 10 days.

• Another component of the new streamlined process requires the property to be listed with a licensed real estate professional who works in the community where the property is located. However, homeowners should be aware that because short sales require the bank to accept an amount less than the amount due on the mortgage, lenders may not approve a short sale, even if the price is comparable to recent sales in the neighborhood.

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

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Sincerely,

Barbara Whisenant

A Division of Richard Realty Groups, Inc 6986 El Camino Real, Ste. H, Carlsbad, CA. 92009                     Office Line: (760) 603-8377 Ext 311    Cell: (760) 583-2107

New Government Subsidized Home Alternative Program. Is it For You?

 

Well we’ve received yet anther government program to help people with distressed homes that comes with detailed instruction about how the lenders are suppose to attend to these types of homeowners.

If this program sounds like it would benefit you or someone you know, please have them give me a call. We can work through the terrible stressful time together.

Working the the North San Diego area has given me the rare opportunity to see for myself the destruction that many of our communities has endured. Oceanside has been of the the hardest hit communities in North County.  The more expensive communities thought they would escape the tragedy, but that was not to me. We are seeing foreclosures in all the communities from Del Mar and La Jolla to Rancho Santa Fe, Encinitas & Carlsbad.

If you need help to just talk it through, a sounding board to get it off your chest, or someone skilled in handling these types of transaction, please give me a call 760.583.2107 or e-mail me barbarawhis@cox.net.

What is HAFA?
HAFA is a government-subsidized Home Affordable Foreclosure Alternatives program for distressed homeowners to sell their homes to avoid foreclosure, even if the sales price is not enough to pay off their existing mortgage loans. Under HAFA, a participating lender will pre-approve the terms of a short sale and give the borrower at least 4 months to market and sell the property using a licensed real estate professional.

Eligibility
The eligibility requirements for a HAFA short sale include the following:
• Property must be borrower’s principal residence;
• Loan must be a first trust deed originated before 2009;
• Loan must be delinquent or default must be reasonably foreseeable;
• Current unpaid principal balance must be $729,750 or less for single-family home (or higher amounts for 2-to-4 units); and
• Borrower must be eligible for, but unable to complete, a loan modification under the Home Affordable Modification Program (HAMP).

 

Home Affordable Foreclosure Alternative Programs, Guidelines

Financial Incentives

• The government incentives under HAFA are as follows
• $3,000 to borrower for relocation expenses;
• $1,500 to servicer for each successful short sale; and

• $1 to investor for every $2 paid to extinguish junior liens, up to $2,000 maximum, not to exceed 6% of unpaid balance.

Effective Dates
April 5, 2010 to Dec. 31, 2012.

HAFA Procedures
The general standardized procedures for HAFA short sales are as follows:
Step 1: Lender evaluates borrower for a loan modification under HAMP.
Step 2: Lender evaluates borrower unable to complete HAMP modification for short sale.
Step 3: Lender issues Short Sale Agreement (HAFA SSA).
Step 4: Borrower lists the property for sale using a licensed real estate agent.
Step 5: Borrower and agent market and sell the property.
Step 6: Borrower submits to lender a Request for Approval of Short Sale (RASS).
Step 7: Lender approves RASS within 10 business days.
Step 8: Sale closes escrow.

Lender's Evaluation
Each participating lender will have its own written policy for approving or rejecting a HAFA short sale, based on factors such as the severity of the loss, market conditions, the borrower’s motivation and cooperation, property valuation, and title review.

Short Sale Agreement (HAFA SSA)
The Short Sale Agreement (HAFA SSA) will include, among other things, the following:
• Either a list price or net proceeds acceptable to the lender;
• An agreement to fully release borrower from all liability for repayment of the loan;
• An agreement not to complete a foreclosure sale if borrower complies with SSA;
• Amount of acceptable closing costs and up to 6% real estate commission.
• Notice that the sale must be an arm’s length transaction; and
• Notice that the buyer must agree not to resell the property within 90 days of closing.

Tax, Credit, and Other Consequences
A HAFA short sale may have serious tax, credit, financial, legal, and other consequences.  A homeowner is strongly encouraged to seek the advice of a qualified professional regarding these consequences.

Participating Lenders
A list of lenders participating in the HAMP program is available at http://makinghomeaffordable.gov/contact_servicer.html. Fannie Mae and Freddie Mac have their own HAFA guidelines for their loans.

More Information
http://makinghomeaffordable.gov/hafa.html.  
See also, Supplemental Directive 09-09 dated March 26, 2010 available at
https://www.hmpadmin.com/portal/docs/hafa/sd0909r.pdf.

This chart is just one of the many legal publications and services offered by C.A.R. to its members.  For a complete listing of C.A.R.'s legal products and services, please visit www.car.org.

Barbara Whisenant

Your Friend in the Business

Follow me on Twitter: www.twitter.com/barbarawhis

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P.S. It's my intention to build lifelong relationships one client at a time. If you know of a friend, co-worker or family member who has a real estate need, please contact me. Your personal referrals are the greatest compliment I can receive!

Barbara Whisenant Realty Group, A Division of Richard Realty Groups, Inc 5411 Avenida Encinas, Suite 110, Carlsbad, CA. 92008 Cell: (760) 583-2107    eFax: (760) 496-1649   DRE# 01357594

FHA to toughen rules for home buyers

The Washington Post

FHA to toughen rules for borrowers
The Federal Housing Administration (FHA) is proposing raising minimum credit scores for borrowers who receive FHA-backed mortgages, increasing down payment requirements, and limiting the amount of money sellers can provide toward closing costs.  The proposed changes are part of an effort to shore up the agency’s finances, which have been hit with rising defaults to its mortgage insurance program.

MAKING SENSE OF THE STORY FOR CONSUMERS

• Historically, the FHA has played a critical role in propping up the housing market by insuring lenders against default after the mortgage market failed.  Currently, the agency guarantees approximately 30 percent of all home loans and 20 percent of refinancings.  In the past, the FHA has resisted raising down payments or insurance premiums, fearing it would be shutting out qualified borrowers and stunting the housing market’s recovery.

• The FHA is hoping that the proposed changes, including requiring that borrowers bring more cash to the closing table, will ensure that borrowers are less likely to default on their loans.  Officials at FHA have yet to determine how much cash will be required.

• Up-front cash can include down payments as well as other payments.  Currently, FHA borrowers can put down as little as 3.5 percent.  One lawmaker has introduced legislation that would require FHA borrowers to put down a minimum of 5 percent.

• The agency also currently allows sellers to provide up to 6 percent of the home’s value toward closing costs or down payments.  Secretary of Housing and Urban Development (HUD) Shaun Donovan has said he wants the maximum permissible level to be lowered to 3 percent, in line with industry norms.

• The FHA has decided “for the time being” to raise its minimum credit score requirements for new borrowers.  The new requirements have yet to be determined.  Presently, borrowers with credit scores as low as 500 may qualify for an FHA loan.

To read the full story, please click here.

In Other News

  San Francisco Chronicle 

Gov’t increases pressure on mortgage industry
The Obama administration said Monday it will crack down on mortgage companies that are failing to do enough to help borrowers at risk of foreclosure, as part of a broad effort to ramp up participation in its mortgage assistance program.

To read the full story, please click here

Reuters

U.S. housing market meltdown not over yet: Zandi
The meltdown of the U.S. housing market is not over yet, and home prices will soon start trekking downward again as a flood of foreclosures loom, a well-known economist said Wednesday.

To read the full story, please click here.

Los Angeles Times

New U.S. home sales rise 6.2 percent
Sales of new homes rose more than expected last month to the highest level in more than a year as the housing market shows stability after its historic collapse.

To read the full story, please click here.

The Washington Post

Home sales rebound to early-2007 level
Economists and policymakers got what they were looking for Monday: a clear uptick in the housing market.  The catch is few believe it’s sustainable.

To read the full story, please click here.

  Orange County Register

State ruling to cut most property taxes
State officials say that property taxes will probably fall for most California property owners next year due to deflation, the first such property tax cut since Prop. 13 took effect three decades ago.

To read the full story, please click here.

  Los Angeles Times

Average home sale price virtually unchanged in third quarter
The average price of houses sold in the country’s 32 largest metro areas was virtually unchanged in the third quarter from the same period a year ago, according to the latest government figures.

To read the full story, please click here.

  San Francisco Chronicle

Gov’t unveils rules to speed up “short sales”
The Treasury Dept. unveiled sweeping rules this week to help financially troubled homeowners who need to sell but can’t get a price high enough to pay off their mortgages.  Homeowners will even get $1,500 to help cover their moving costs.

To read the full story, please click here.

  Los Angeles Times

Home loans will hold fewer surprises
Anyone who has purchased or refinanced a few homes has probably learned to dread the closing statement, which all too often included a pile of new or inflated fees that your lender had never before mentioned.

To read the full story, please click here

Setup your own home search at Barbara’s Web Site.

Barbara Whisenant

Your Friend in the Business

Follow me on Twitter: www.twitter.com/barbarawhis

Be my Friend on Facebook: Barbara Whisenant http://www.facebook.com/barbarawhis

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Linkedin: http://www.linkedin.com/in/barbarawhisenant

Read my Blog: http://www.barbarawhis.com

Visit my Real Estate website: http://www.Homes4SaleSanDiego.com

Visit my Nu-Skin website: http://barbaraw.nsedreams.com

P.S. It's my intention to build lifelong relationships one client at a time. If you know of a friend, co-worker or family member who has a real estate need, please contact me. Your personal referrals are the greatest compliment I can receive!

A Division of Richard Realty Groups, Inc 5411 Avenida Encinas, Suite 110, Carlsbad, CA. 92008 Cell: (760) 583-2107    eFax: (760) 496-1649   DRE# 01357594

Seminar to learn about Short Sales, Foreclosures & 1st Time Buyer Programs.

FREE Short Sale, Foreclosure &

 

1st Time Home Buyer Seminar

DO YOU KNOW WHAT A SHORT SALE IS?

DO YOU KNOW WHAT THE DIFFERENCE IS BETWEEN A SHORT SALE, A PRE-FORECLOSURE & A FORECLOSURE??

ARE YOU CURIOUS ABOUT THE DEALS THAT CAN BE HAD IN YOUR OWN NEIGHBORHOOD?

ARE YOU WONDERING ABOUT YOUR FINANCING OPTIONS?

NOW is the perfect opportunity to become a real estate investor!!

Hurry!  Limited Seating!!  Reserve Your Seat Now!!

Learn what a short sale is and how it is different from a foreclosure in a seminar where all your questions will be answered.  You will walk away knowing exactly what you need to know to either buy your first home, or buy your first investment.  Those who are having trouble with the loan modifications and don’t know what to do next, will also get their questions answered. A lending specialist will be on hand to inform you about the various loan programs available.  All attendees will receive FREE access to ListingBook.com!

This event is not to be missed!

When: Wednesday, September 16, 2009

Where: Richard Realty Group, Inc. Conference Room

5411 Avenida Encinas, Carlsbad, 92008

Time: 6 p.m.

Everything you need to know before buying or selling a short sale or foreclosure and everything a 1st time home-buyer or investor should know:

• Learn about the home buying process
• Learn why buying a short sale or foreclosure is different
• Learn how to write an offer that gets accepted
• Learn why buying a short sale is a great idea
• Receive FREE access to ListingBook.com just for showing up!
  
• Uncover the costs involved in home ownership
• Determine how much home you can afford
• Explore affordable financing options
• Apply for pre-approval and start house hunting immediately!*
• You may be able to afford more home than you thought!

Enter to win a $50 gas card!**

*This is not a promise to lend.

**Must be present to win.

Barbara Whisenant (DRE# 01357594)

Cathie Nichols (DRE# 01348503)

Nancy Osco (DRE# 00801918)

The Short Sale Boomerang Bomb

All translations are provided for your convenience by the Google Translate Tool. The publishers, authors, and digital providers of this publication are not responsible for any errors that may occur during the translation process. If you intend on relying upon the translation for any purpose other than your own casual enjoyment, you should have this publication professionally translated at your own expense.

The Short Sale Boomerang Bomb
Doreen Roberts

Q. What is worse than waiting for months to close
a short sale and having it fall through?

A. Closing a short sale that comes back like a boomerang two or three years later to explode your world.

Risk management experts are telling REALTORS® that the short sale lender-prepared documents that are required to close a short sale often include a requirement for the seller to agree to be responsible for the deficient balance - even on loans that would normally not be recourse obligations.

How does this affect you as a REALTOR®? If you encourage a seller to sign the Short Sale Lender Approval Agreement to get the transaction closed more quickly, it could be considered “practicing law without a license”- a violation of Article 13 of the NAR Code of Ethics. Beyond the ethical ramifications, if the seller later learns that they signed an agreement which commits them to a debt that they might not have had to pay if they had not closed the short sale and just went into foreclosure, their attorney could come after you for damages.

It’s not a great situation to wait months and then find out the short sale lender is requiring the seller to agree to terms that may be quite disagreeable. The smart agent will refer the seller to a local attorney with a lot of experience in these matters who may be able to negotiate the term off the agreement or perhaps advise the seller not to go through with the short sale.

Gov Hutchinson, C.A.R.’s Assistant General Counsel, advises that some short sale lenders who do not require the deficiency clause in their agreement might still be able to come back against the seller for recourse obligations. A specific waiver of deficiency responsibility would have to be negotiated with the lender.

Risk management experts recommend that a seller should consult with an attorney prior to listing a short sale property to review their loan documents, financial situation and the possibility of a deficiency balance responsibility before deciding whether a short sale or foreclosure would be best.

Be smart. Don’t take risks today for something that could boomerang back tomorrow. Make sure your short sale seller clients are getting expert advice before they sign Short Sale Lender Approval Agreements.

Barbara Whisenant

Your Friend in the Business

Follow me on Twitter: www.twitter.com/barbarawhis

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Visit my website: www.Homes4SaleSanDiego.com

A Division of Richard Realty Groups, Inc 6986 El Camino Real, Ste. H, Carlsbad, CA. 92009 Cell: (760) 583-2107 eFax: (760) 496-1649